When Congress approved the Individuals with Disabilities Education Act (IDEA) in 1975, it committed to covering 40% of the additional expenses associated with educating students with disabilities. By 2025, the promise has been far from fulfilled, with less than 12% of it being funded.
The government is requesting $14.4 billion for special education grants this year.
Even though that is the largest request ever, it is still insufficient. Families are being impacted by the $24 billion deficit in schools.
What would happen if Congress acted at last? Would your child’s services change as a result? Would this have an impact on your local taxes? We’ll explain everything in this blog, including a brief grid to assist parents grasp the issues.
How We Got Here
It is necessary to go back to the beginning to comprehend why IDEA is currently underfunded. Here is a brief overview of the history and the ways in which policies and pledges have changed over time.
IDEA’s 1975 Origins
Public Law 94-142, today known as the Individuals with Disabilities Education Act (IDEA), was passed by Congress in 1975. This law guaranteed a free and appropriate public education (FAPE) in the least restrictive environment was guaranteed to students with disabilities. Congress promised to subsidize up to 40 percent of the “excess costs” to assist states in paying for special education, which can be substantially more expensive than general education.
Here is the hitch – while the law permitted the amount of funding, it did not ensure it. The funds would still need to be appropriated annually by Congress through the budgeting process. And the divide started there.
Appropriations vs. Authorizations
Consider appropriation as payment and authorization as permission. “We’ll cover up to 40%,” Congress declared, but it never regularly provided the money. The federal government must vote each year to approve funding for IDEA, and it has consistently fallen well short of the 40% threshold.
As a result, even while the legislation mandates that schools offer special education programs, it does not fully finance these services, leaving states and local districts to bear the remaining costs. For this reason, parents encounter service delays or denials, and many school systems are forced to make difficult decisions.
Funding Trajectory, 1975-2024
IDEA financing has had a difficult journey throughout the decades. Federal support declined in the 1980s and stayed largely unchanged until the 1990s, following a period of modest expansion in the early years. Temporary boosts occurred in the early 2000s, particularly during the 2009 American Recovery and Reinvestment Act (ARRA), which gave special education a one-time $12 billion boost.
However, even as the number of students in need of services increased, funding stagnated once more once the stimulus ended. Despite growing costs and student needs, the federal share remained below 12% in 2024.
Where Funding Stands in 2025
Special education funding in 2025 is still insufficient, despite decades of promises, and the consequences extend well beyond special education classrooms. Here are some examples of current underfunding and the effects it has on teachers, students, and entire school systems.
Current Federal Share (<12 %)
Less than 12% of the “excess costs” of teaching kids with disabilities are being covered by the federal government in 2025, which is significantly less than the 40% that was promised. What does that actually mean, then?
Assume that a school spends $20,000 annually on special education services for a kid. These services may include examinations, specialized instruction, therapies, and aides. Of that, $8,000 would be paid by the federal government under the initial pledge. Rather, schools are only getting about $2,400, which means that each student is short $5,600.
You can see how rapidly the gap widens and how difficult it is for schools to stretch their meager funds to satisfy their legal and pedagogical commitments when you multiply that by the number of kids in a district.
State & Local Pick-Up
States and local districts must make up the deficit because the federal government doesn’t pay its fair share. That frequently results in:
- Budget juggling: To pay for special education requirements, money is taken away from mainstream programs.
- Teacher shortages: Because districts are unable to provide competitive pay or manageable caseloads, they may find it difficult to recruit and retain skilled special education teachers and other staff.
- Weakened inclusion: Schools may weaken their efforts at inclusion by assigning students with disabilities to less supportive settings or by passing up chances to create meaningful peer relationships if they lack the necessary personnel or expertise.
- Parents might observe overburdened IEP teams, greater delays in evaluations or services, and fewer assistants in the classroom.
- Hidden Costs to General-Ed Students
Many families are unaware that underfunding special education has an impact on regular education as well.
Other sectors suffer when local districts take money out of the total budget to make up for IDEA deficiencies. That could imply:
- Generally speaking, larger class sizes resulted in lower staffing costs.
- Fewer career-tech programs, music, art, and other elective classes.
- Outdated technology or textbooks because of resource reallocations and postponed improvements.
Therefore, the burden is felt even by families whose children do not get special education programs. This is a problem with the entire educational system, not just special education. The entire system is impacted when one component receives insufficient funding.
The 2025 Legislative Landscape
New legislation and budget talks in 2025 could finally alter the situation—or put everything on hold once more—as IDEA funding continues to fall well short of expectations. Take a look at what is being discussed, what is gaining momentum, and what obstacles still need to be overcome.
The IDEA Full Funding Act
There is renewed hope for significant advancements in special education funding thanks to two matching measures that were submitted in April 2025:
Rep. Jared Huffman (D-CA) sponsored H.R. 2598, which was referred to the House Education & Workforce Committee after it was introduced in the House on April 2, 2025.
The very following day, Sen. Chris Van Hollen (D-MD) submitted its Senate companion bill, S. 1277.
The goal of both proposals is to meet the initial IDEA funding pledge of 40% from 1975. Although similar measures have been filed in the past, this year’s version has gained more public support and awareness due to growing bipartisan concern over special education inequities.
Proposed Funding Ramp-Up
According to the House and Senate legislation, federal spending will be increased gradually over the following ten years—a process known as the “glide path.” By 2035, annual government payments would have increased to the full 40% under this scenario.
Nonetheless, some lawmakers and disability groups contend that this schedule is too slow. Citing the length of time pupils have already had to wait and the fact that growing educational expenses are surpassing even suggested increases, they are advocating for a five-year “catch-up” version.
FY 2026 Budget Talks
Building on the $14.4 billion budgeted for 2025, the White House is anticipated to seek another record increase in IDEA funding for FY 2026. The House, however, opposes this since budget cap plans seek to limit discretionary spending, particularly that related to education.
The outcome of this budget battle will determine whether the IDEA Full Funding Act is supported by actual funding or just an unfilled pledge.
Wild Cards
The extent of IDEA financing change in 2025 may be influenced by several uncertain factors:
- Even when it comes to education, deficit hawks are still opposed to higher federal spending.
- Some conservative groups support the Project 2025 policy agenda, which includes a block-granting paradigm that may jeopardize IDEA and other categorical funds.
- With control of Congress and the White House up for grabs in November, lawmakers may put messaging ahead of compromise during election-year politics.
What “Full Funding” Would Look Like on the Ground
The effects of IDEA would be felt in schools, therapy rooms, and family living rooms all around the nation if Congress fulfills its pledge to fully fund the program. Here’s how education may be genuinely changed by those dollars.
Dollar Translation
The financial gap for 2024 varies significantly by state, according to the National Education Association’s estimations. For instance:
- California would get over $3.2 billion extra annually.
- Support for Texas would increase by more than $2.3 billion.
- Illinois, New York, and Florida might each benefit by more than $1 billion a year.
These are more than just figures; they are the potential hiring of special education instructors, the potential full-time employment of therapists, and the potential availability of assistive technology for all students in need.
Service Upgrades
Schools could eventually lower student-to-staff ratios with full funding, enabling:
- Reduced caseloads for therapists and special education instructors
- Prompt behavioral, occupational, and speech therapy
- Increased transition initiatives to help pupils become ready for life beyond high school
- More resources and training for general education teachers to promote inclusivity
Stronger student outcomes, better tailored help, and fewer service delays are all consequences of this.
Potential Local Tax Relief
Local property taxes are presently used by many districts to make up for federal deficits, which can put pressure on communities, particularly in places with small tax bases.
When the federal government fully invests:
- Stabilization of local budgets is possible.
- Money might be diverted to more pressing requirements like after-school activities, safety precautions, or facility improvements.
- In many areas, tax hikes might be avoided.
It gives districts more leeway and adaptability in how they address every student’s needs.
Equity Considerations
The financial imbalance frequently affects high-poverty districts and rural schools the most. Many times, districts experience the following:
- Struggle to recruit and keep skilled special education personnel
- Not having access to strong support systems or inclusion experts
- Suffer from excessive compliance demands as a result of insufficient administrative capability.
With a full government commitment, educational inequities would be reduced and students in underserved communities would finally receive the resources to which they are constitutionally entitled and deserve.
Scenarios for 2025-2026
Depending on Congress, budget priorities, and election-year circumstances, 2025–2026 might take a number of different paths, as IDEA complete financing is still being worked out. Here is a detailed explanation of each possible funding route and how it can impact local services, schools, and families.
| Scenario | Likelihood | Parent Impact | Watchpoints |
| A. 10-Year Incremental Passage
Congress passes H.R. 2598/S.1277 with a slow, predictable funding ramp. |
Moderate
There’s bipartisan interest, but budget politics could slow the pace. |
Gradual service growth
Parents may see small annual improvements—e.g., more therapists, slightly lower caseloads, or faster evaluations. |
Annual advocacy is critical
Parents and advocates will need to push every year to ensure Congress sticks to the funding ramp. |
| B. One-Time Surge via Budget Reconciliation
A large one-time bump is included in a broader spending deal. |
Low
Political divisions and deficit concerns make this unlikely in the near term. |
Rapid staffing and infrastructure upgrades
Could mean more aides, updated classrooms, and better training programs—all at once. |
Risk of future claw-backs
Without a long-term commitment, districts might hesitate to hire or expand services. |
| C. Stalled—Status Quo
No new legislation; federal funding remains under 12%. |
High
This is the current trajectory. |
Continued state/local strain
Parents keep bearing the brunt—larger special ed caseloads, longer wait times, and out-of-pocket costs for services. |
Wider gaps in service quality
Disparities will deepen between well-funded districts and those already under strain. |
| D. Block-Grant Overhaul
Push to replace IDEA entitlements with flexible state-level block grants. |
Emerging
Promoted in some federal policy platforms (e.g., Project 2025). |
Flexibility vs. rights dilution
Could mean states get more leeway but lose federal accountability, weakening parent rights. |
Need strong FAPE guardrails
Parents should watch for any erosion of legal protections tied to funding use. |
How Under-Funding Hurts Students & Families
Depending on Congress, budget priorities, and election-year circumstances, 2025–2026 might take a number of different paths, as IDEA complete financing is still being worked out. Here is a detailed explanation of each possible funding route and how it can impact local services, schools, and families.
Delayed Evaluations & Services
Insufficient funding frequently prevents districts from hiring enough school psychologists, experts, or assessors. As a result, there may be months or even longer delays in screening children for special education. While parents anxiously await answers, these delays cause youngsters to fall further behind academically or struggle behaviorally because they don’t receive the help they need when they need it most.
Inadequate Inclusive Placement Supports
Giving students with disabilities the resources they need to thrive in general education classes is just one aspect of inclusion. Schools might not have the co-teachers, assistants, assistive technology, or training necessary to facilitate inclusive placements if they don’t have the money. The spirit of IDEA may be broken because of kids being removed needlessly or not being included in a meaningful way.
Due-Process Spike
Families frequently feel they have little choice but to submit state complaints or due-process hearings when essential services, such as speech therapy, occupational therapy, or an extended school year, are overlooked. Families suffer emotionally and financially from litigation, and schools lose time and funds that could be used for support services.
Teacher Burnout & Turnover
With more cases, fewer assistants, and excessive paperwork requirements, special educators are being forced to accomplish more with less. Schools find it difficult to acquire and keep employees without sufficient funding, particularly in rural or highly impoverished locations. As a result, kids who rely on consistency and trust see high turnover, teachers who are under stress, and uneven services.
Parent Action Toolkit (2025 Edition)
Cover the following aspects as h3 and write proper details for explanation, keep the tone easy to understand.
- Contact-Congress Script Generator
Customized emails with data support are more effective than generic ones. To determine how much your district loses because of IDEA underfunding, use online resources or calculators (often provided by the NEA or the PTA in your state).
- Budget-Hearing Cheat Sheet
Be prepared when your legislators host budget discussions or town halls. Here are some simple yet powerful questions to ask: - “Will you be in favor of H.R. 2598/S.1277, the IDEA Full Funding Act?”
- “Do you agree that the 40% promise from 1975 should be met by federal IDEA funding?”
- “How do you intend to close the $24 billion deficit that is harming our district’s students?”
Asking precise, unambiguous questions forces lawmakers to act and demonstrates your attention to detail.
- Coalition Map
You don’t have to speak up by yourself. Legislative days, letter campaigns, and calls to action are frequently organized by organizations such as the School Superintendents Association (ASAA), the Council of Parent Attorneys and Advocates (COPAA), and your local PTA or SPED PAC.
Visit their webpages or social media accounts to:
- Participate in advocacy days at the state level.
- Obtain sample letters to Congress.
- Register to receive key vote alerts.
- Joining forces increases your voice and creates opportunities for enduring advocacy relationships.
- Social-Media Playbook
Congress finalizes the contents of the education budget between March and May, and social media turns into a crucial battlefield during this time. Here’s how to participate:
- #FundIDEA #SpecialEdShortfall #FAPEforall #IDEAat40 are hashtags to use.
- Post Local Stories: When combined with a graphic (such as a state funding deficit chart), a brief personal narrative regarding delayed services can have a powerful impact.
- Tag Lawmakers: Publicly criticizing lawmakers promotes accountability. Incorporate your state and district name into your post or tweet.
- Share Data: To raise awareness among peers and educators, use NEA or AASA visualizations that illustrate state-by-state underfunding.
Timeline & Key Dates
Parents and supporters can better plan their outreach for maximum impact by being aware of the important dates in the federal funding cycle. As Congress negotiates IDEA financing in late 2025 and early 2026, keep an eye out for the following:
- Aug 2025
This is the point at which the House and Senate complete their versions of the laws pertaining to education spending, including the amount of funds they suggest for IDEA. If the IDEA line item is strong, there is a greater chance of obtaining full or additional spending in the final budget. These markups set the tone.
Now is the time to contact your representatives by phone or email. Request that they advocate for increased IDEA funding in the appropriations bill and support the IDEA Full Funding Act.
- Sept 30 2025
The federal budget for fiscal year 2026 must be approved by Congress by this date. A continuing resolution (CR), which would temporarily extend current funding levels, might be passed to prevent a shutdown if they are unable to reach an agreement in time.
Why It Is Important Any increases are delayed by a CR. Schools will continue to function with inadequate funding if IDEA funding is already low.
- Oct-Nov 2025
Congress may think about utilizing budget reconciliation, a fast-track process that enables some funding bills to pass with a bare majority in the Senate, if bipartisan consensus slows. In the past, this procedure has been employed to ram through stimulus plans or one-time funding increases.
Impact on Parents: There may be an opportunity to obtain a one-time IDEA funding boost through a reconciliation bill. During this time, stay in contact with national advocacy organizations; they will notify you if any action is required.
- Jan 2026
Federal payments to states under the new system would start in January 2026 if a full-funding bill (such as H.R. 2598 or S.1277) is signed into law by the fall of 2025. This funding could immediately begin supporting additional staff, assessments, and services and would be distributed through the standard Part B awards.
Hope on the Horizon: If Congress acts, families may start to notice noticeable improvements in their schools at this time.
Frequently Asked Questions
Write brief answers for the following questions.
- Is “full funding” a one-time fix?
No. With “full funding,” Congress would at last fulfill its long-standing pledge to pay 40% of the additional expenses associated with special education annually rather than just once. It’s a continuous investment rather than a one-time rescue.
- Will my state lose flexibility?
Absolutely not. Local choices and program management would still be left to the states and districts. Without any conditions attached, full funding merely provides them with the resources they have long been promised.
- Does more federal money mean more federal mandates?
Full funding is not linked to any additional mandates. The obligations and protections of the IDEA statute are currently in place. Simply put, more financing enables schools to satisfy those requirements.
- Could private-school placements be covered?
Yes, in some circumstances. Families may be entitled to private placements, which are currently permitted under IDEA, if a public school is unable to provide a Free Appropriate Public Education (FAPE). If districts receive full financing, problems may be resolved sooner, which would lessen the need for these placements.
